Any bill of exchange, even if not expressly drawn to order, is transferable by endorsement.
When the drawer has inserted the words "not to order" or an equivalent expression in the bill of exchange, the instrument is transferable only in the form and with the effects of an ordinary assignment.
The endorsement may be made even in favour of the drawee, whether accepting or not, the drawer, or any other party obligated. These persons may endorse the bill again.
The endorsement must be unconditional. Any condition to which it is subject is deemed unwritten.
A partial endorsement is void.
An endorsement "to bearer" is valid as a blank endorsement.
The endorsement must be written on the bill of exchange or on an attached sheet called an allonge. It must be signed by the endorser. The endorser's signature may be affixed either by hand or by any non-manual method.
The endorsement may not designate the payee or may simply consist of the endorser's signature, constituting a blank endorsement. In the latter case, the endorsement, to be valid, must be inserted on the back of the bill of exchange or on the enclosed portion.
The endorsement transfers all rights arising from the bill of exchange.
If the endorsement is blank, the holder may:
- Fill in the blank, either with their own name or with the name of another person;
- Endorse the bill again in blank or to another person;
- Deliver the bill to a third party, without filling in the blank and without endorsing it.
The endorser is, unless otherwise stipulated, responsible for the acceptance and payment of the bill.
They may prohibit a further endorsement. In this case, they are not liable to the parties to whom the bill is subsequently endorsed.
The holder of a bill of exchange is considered a legitimate holder if they provide proof of their right through an uninterrupted series of endorsements, even if the last endorsement is in blank.
When a blank endorsement is followed by another endorsement, the signatory of the latter is deemed to have acquired the bill by the blank endorsement.
If a person has been dispossessed of a bill of exchange by any event whatsoever.
The holder, having proven their right in the manner indicated in the preceding paragraph, is only required to relinquish possession of the bill if they acquired it in bad faith or if, in acquiring it, they committed gross negligence.
Those sued under the bill of exchange may not raise against the holder defences based on their personal relationship with the drawer or with previous holders, unless the holder, in acquiring the bill, knowingly acted to the detriment of the debtor.
When the endorsement contains the notation "value for collection," "for collection," "by proxy," or any other notation implying a simple mandate, the holder may exercise all the rights arising from the bill of exchange, but may only endorse it by proxy.
In this case, the obligors may only raise against the holder those defences that would be available against the endorser.
The mandate contained in an endorsement of a power of attorney does not terminate upon the death of the principal or the occurrence of their incapacity.
When an endorsement contains the words "security value," "pledge value," or any other wording implying a security interest, the holder may exercise all the rights arising from the bill of exchange, but an endorsement made by them is valid only as an endorsement by way of power of attorney.
The obligors may not raise against the holder any defences based on their personal relationship with the endorser, unless the holder, in receiving the bill, knowingly acted to the detriment of the debtor.
An endorsement made after the due date produces the same effects as an endorsement made before the due date.
However, an endorsement made after a protest for non-payment or made after the expiry of the period set for drawing up the protest, produces only the effects of an ordinary assignment.
Unless proven otherwise, an undated endorsement is deemed to have been made before the expiry of the period set for drawing up the protest.
It is forbidden to backdate orders under penalty of forgery.